If you’ve been researching solar power for your home or business, there’s no doubt that you’ve heard that it’s a more affordable energy solution. This isn’t to say that there aren’t direct costs, but this alternative energy source qualifies for alternative financing opportunities as well. Aside from private financing and rebate programs, clean energy systems can be made more affordable with the help of federal programs.
We’re outlining some of the nationwide programs and incentives available to increase the affordability of clean energy systems.
Financing Programs for Sustainable Energy Projects
The Federal Investment Tax Credit (ITC)
Also known as the Solar Tax Credit, this is a federal tax incentive available to relieve some of the costs of solar installation. Although the ITC has saved homeowners and business owners significantly on solar projects in the last several years, it will be expiring in the very near future. 2020 is the final year that installations can qualify for a 26% tax credit through this program. That percentage will lower to 22% in 2021, then disappear completely for residential systems in 2022. However, commercial systems will continue to qualify for a 10% tax credit after that.
Learn more about this IRS Tax Credit here.
Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program
This program is available to agricultural producers and rural small businesses. In an effort to help stimulate rural economies and increase the availability of clean energy, the program offers grants and loan financing to help rural business owners invest in renewable energy systems such as solar installations. Grants from this program can cover up to 25% of project costs.
Learn more about the USDA’s Loan & Grant Program here.
The Renewable Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance Program (EA/REDA)
Much like the REAP Loan and Grant program mentioned above, this program assists in clean energy development for rural small businesses and agricultural producers. While the loan and grant program is meant to assist with project installation costs, this energy audit program is meant to assist with the other development costs related to a sustainable energy project. This program can help fund up to $100,000 of a project’s development-related costs in one year.
Learn more about the USDA’s Energy Audit Assistance Program here.
U.S. Department of Energy Loan Guarantee Program - Renewable Energy and Efficient Energy Projects
In an effort to support sustainable solutions, the Department of Energy offers loans for renewable energy projects on a commercial scale. The program supports projects that “avoid, reduce or sequester greenhouse gases,” such as solar power and other renewable systems. While this financing option consists of loans, which must be paid back, it assists the initiation of commercial installations and allows for repayment over time.
Learn more about the Department of Energy’s Loan Programs here.
Start Your Solar Project Now
These are just a few of the many programs improving affordability for clean energy like solar power. State programs and local incentives are also available to help ease the cost of solar installation. Find out what programs are available in your area by visiting the Database of State Incentives for Renewables & Efficiency website. You can also learn about other financing options by speaking with a YellowLite solar consultant for a project quote!
Reach out to us and start planning your project now:
Call us at 216-333-1364
Email us on https://www.yellowlite.com/contact-us/